In the middle of the week, bitcoin (BTC) is struggling. While a bullish recovery appears to have been emerging in the short term. The latter comes with a drop to the top of its range to come and get $ 18,900 this Tuesday afternoon. For the past few weeks, the latter has not had much volatility other than simple daily volatility. The level is crucial and the coming weeks are decisive. I keep in mind the bullish scenario discussed in last week’s review, but the dollar does not appear to be weakening. This has an effect on the decline or stagnation of bitcoin. So what can be learned from this market, where the bun ? Without further ado, we’re off to a 360 ° bitcoin point this week. I will try to be as complete as possible while sharing my feelings about the market. Good read!
The $ 20,000 and surrounding area is a strategic location for bitcoin. Technical analysis level, the latter is located on the MM (Moving Average) 200 days. A tool that protects buyers and plays, as we see, the role of the fierce war between buyer and seller. Lots to buy long term spot, but also take profit for sellers. This belt also coincides with the old 2017 top so it serves as a support again.
We now have 2 scenarios available:
- Scenario A: this illustrates a scenario where a simple range is manipulated from below, to regain liquidity. We want to reintegrate this zone as soon as possible so that the middle of this price range can be targeted, then the top that almost corresponds to ATH (All Time High). A little optimistic, but let’s not rule out any hypotheses.
- Scenario B: This one, which I think is a little more realistic, illustrates an area that will be protected, but which will make it claim, especially given the SP500 and the whole scenario. A iteration of this level can be seen on the MA (Moving Average) as well as the support that has become a resistance. The objectives will be much lower then, and why not reach $ 10,000-14,000.
This is still a potential scenario so it is not necessarily a simple tradable speculation in the short term.
A range is set in a smaller unit of time, leaving opportunities for traders who want to play them. We look at the release of the latter to try and follow the next emerging trend. Who knows the $ 18,000 / 19,000 / 20,000 $ will not be easy to break down. But it is still the dominant medium-term trend.
Volumes are low and the market price is falling, suggesting that many buyers are not keeping their jobs for long. The declines are easy to notice as the strong trend and uncertainty is clear.
The SP500 in obscure
For the SP500, the latter bounced off the 0.7 Fibonacci with a nice bullish engulfing. As mentioned before, I see the $ 4000 area being revisited. Which would leave a small window for assets risk off take advantage of this increase.
Indecision still reigns, with the majority of sellers in the market. Long-term purchases must be made in several steps to dilute the PRU (Unit Cost Price). For strong risk aversion, favor putts optional for hedgesyour wallet. Don scalpers them broken short being mostly in trend and maximizing gains.
Finally, I get numerous questions that are asked of me on the site where I analyze my values. Personally, and for many years, I use TradingView, an intuitive interface with many tools and a wide selection of assets. It is clearly the most developed and most used interface on the market.
This is the end of this analysis, please do not hesitate to give me feedback on my Twitter account @ 0xakin. Don’t be too fat, take profits regularly, be successful money managementfor your trades and depending on your initial plan. Only invest what you can lose as long as it does not affect your morale too much. Have a good week everyone, and see you next week for a new analysis!
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I am passionate about technical analysis and technology, I have been diligently pursuing cryptocurrencies since 2017. Rather than trading and investing, I am trying to democratize, in my own way, the ecosystem that will inevitably change our habits tomorrow!